During the keynote address at the Apple World Wide Developers Conference, Apple CEO Steve Jobs announces the new iPhone 3G on Monday, June, 9, 2008 in San Francisco, Calif. The new iPhone promises to be faster and cheaper then ever before with prices starting as low as $199 and will be available on July 11, 2008.
Photo by Mike Kepka / The Chronicle less

During the keynote address at the Apple World Wide Developers Conference, Apple CEO Steve Jobs announces the new iPhone 3G on Monday, June, 9, 2008 in San Francisco, Calif. The new iPhone promises to be faster ... more

Photo: Mike Kepka, The Chronicle

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The Apple 3G iPhone is shown in this publicity photo released to Reuters June 9, 2008. Apple Inc on Monday unveiled a next-generation iPhone with faster Internet access that will run on advanced wireless networks and sell for as low as $199 -- half the current entry-level price. Courtesy of Apple Inc. via Reuters less

The Apple 3G iPhone is shown in this publicity photo released to Reuters June 9, 2008. Apple Inc on Monday unveiled a next-generation iPhone with faster Internet access that will run on advanced wireless ... more

Photo: Apple Inc., REUTERS

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Shadow side of iPhone 3G's blockbuster success

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Stephen Yarbrough has a love-hate relationship with his new Apple iPhone 3G: He calls it the best gadget he's ever had but also the worst mobile phone.

"I was driving down Folsom Street in San Francisco and I got a dropped call 10 times. I get dropped calls just standing in one place," said Yarbrough, a 34-year-old San Francisco accountant. "I'm extremely annoyed, but I'm hopeful a software update will fix it."

Since the iPhone 3G launched to acclaim and long lines, it has generated loads of press about its faster Internet speeds, downloadable applications and GPS capability. But it's also touched off a flurry of gripes from some users, who continue to struggle with the phone's voice and data reception and battery consumption.

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Yarbrough's complaints stem from spotty phone reception due to the phone's 3G wireless technology. He said when the phone is set to ride on the faster 3G network, the signal often fluctuates and drops calls even though it should be able to revert to a slower wireless technology called Edge.

He's taken to turning off his phone's 3G connection when making phone calls and relying on the Edge technology to maintain his conversations. Yarbrough upgraded his phone's software last week but the problems continued, he said.

Kevin Karkada, a 29-year-old Danville software consultant, shares many of the same complaints about reception. But his biggest concern is battery consumption, which he said often leaves him with very little juice by the early evening.

He's also taken to turning off 3G, Wi-Fi, Bluetooth and e-mail syncing just to ensure a strong charge throughout the day.

"It's painful," he said. "I have to set my mind on the phone to think about saving battery life."

The complaints have not done much to mar the popularity of the iPhone 3G, which sold 1 million units in its first three days after going on sale July 11. The phone has smashed through the sales pace of its predecessor, which took 74 days to hit the 1 million mark.

AT&T, the exclusive U.S. carrier partner for the iPhone 3G, said it sold almost twice as many iPhone 3Gs in the first 12 days compared to the same period for the first iPhone a year ago. About 40 percent of iPhone 3G owners were lured away from other carriers, AT&T said.

Mark Siegel, an AT&T spokesman, said Apple and AT&T are working to ensure users have a great experience with the iPhone 3G, which he said has not been a tremendous source of complaints. He said while customer concerns are being investigated, it's hard to know whether they are widespread or the product of individual circumstances.

"How a device performs in individual situations depends on circumstances like where you are in the 3G coverage, how close you are to a cell site. Things like terrain and buildings all come into play," Siegel said. "I'm not denying that people are having a less-than-satisfactory experience, but overall, the phone is doing great."

Apple did not respond to requests for comments. But in an interview in the Wall Street Journal, Apple CEO Steve Jobs was upbeat about the launch of the iPhone 3G and particularly Apple's App Store, which distributes paid and free applications for the iPhone.

Jobs said 60 million apps have been downloaded, including $30 million worth of paid programs. He said that underscores Apple's belief that going forward, software will be what differentiates iPhones from other devices.

Analysts believe Apple has been successful not only in the number of iPhone 3G units sold but also in luring developers to write applications for the iPhone platform. What problems exist are akin to growing pains, said Tim Bajarin, president of Creative Strategies, a technology research and consultancy firm.

Bajarin said other mobile platforms like Windows Mobile and BlackBerry took some time to improve and eliminate most issues. He said Apple should be able to do the same quickly through software updates.

Michael Gartenberg, an analyst with JupiterResearch, said the iPhone 3G's struggles are due to its own popularity. The crush of new users on the AT&T network can degrade wireless service. And the 3G access and downloadable applications on the iPhone can encourage people to run down their batteries faster than they would on other phones.

"Once you have a fast connection, you can do things you wouldn't have done on Edge," Gartenberg said. "The more activities you do, the more drain on battery life."